CERSAI: Full Form, Meaning, Objectives and Fees
Pushpanjali • January 13, 2025
A home of our own brings a real sense of security and safety into our minds. That’s one of the prime reasons why everyone dreams of their own home. There are various things associated with it when you take a home loan. One of those is CERSAI charges. Let us understand that here-
What is the full form of CERSAI?
CERSAI stands for Central Registry of Securitisation Asset Reconstruction and Security Interest of India.
What is CERSAI?
CERSAI is a centralised platform that was created by the Reserve Bank of India (RBI). It is a Government of India entity that looks after the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It maintains records of interest, securities that is made over any type of property. Initially, it began with the registry of immovable properties only. But now, it covers immovable, movable, intangible properties and receivables as well.
This database is used by lenders across the country to check if that has already been used as collateral for any other loan or not. This helps the government, businesses and the citizens to gain transparency over property and in turn prevent frauds. These frauds can be anything like multiple loans over one property, illegal transactions and others.
What are the objectives of CERSAI?
The objectives of CERSAI are-
- Prevention of Frauds- The main objective is to prevent frauds like multiple financing on one property, illegal claims, and other frauds.
- Efficiency- CERSAI provides a central database to all lenders, be it banks or NBFCs to check for existing securities and interests. So,this helps them track the collateral easily and process the loan efficiently.
- Reduce defaults- This whole process helps the lenders minimise the chances of default on a loan as the records of all security are available online and can be checked before sanctioning a loan.
- Platform to collaborate- CERSAI provides lenders with a common platform to record transactions and work together.
- Help Property Buyers- At first, there was no way for home buyers to check that the property which they are buying are free of any loan or financing. With this, they are now able to check that the property is free from any kind of loans or encumbrances.
What are the transaction charges of CERSAI?
The transaction charges are as follows-
| Type of transaction | Fees (tax exclusive) |
| CERSAI Search/ Inspection Charge | ₹10 |
| Create/Modify Security Interest (upto ₹5 lakhs) | ₹50 |
| Create/Modify Security Interest (above ₹5 lakhs) | ₹100 |
| Reconstruction or Securitisation of Financial Assets | ₹500 |
Note- These charges are exclusive of taxes and can vary.
What is the official website of CERSAI?
https://www.cersai.org.in/CERSAI/home.prg
Who can access CERSAI?
CERSAI’s registration platform is accessible to banks, financial institutions, and individuals upon fee payment. By registering, lenders can verify if a property has any existing security interests created by other lenders. This due diligence is typically conducted before loan approval.
Furthermore, CERSAI empowers genuine property buyers. They can independently access the registry to ascertain if the property they intend to purchase is free from encumbrances created by prior lenders.
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